Third, the stock market tells investors “don’t worry, be happy,” Jim Cramer told his Mad Money viewers. That’s because no matter who wins the presidential election, your portfolio will be fine.
Cramer listed several reasons for Tuesday’s strong market rally. For one thing, investors are breathing a sigh of relief as the most controversial recent election in recent memory is finally coming to an end. There are glimmer of hope for an orderly handover of power if Joe Biden wins and hopes for a second stimulus between hours and January.
But mostly, Cramer said, investors are reacting to the fact that we̵7;ve seen stock weakening last week, leaving opportunities for this week. We are also witnessing the strength of the economy, with housing and cars leading. That’s good news for a wide range of industries, from materials to railroads.
The Dow Jones Industrial Average rose 555 points on Tuesday, or 2.06%, to 27,480, the S&P 500 up 1.78% and the Nasdaq up 1.85%. At one point on Tuesday, the S&P 500 was up 2.4%, its best performance in one day since June. Financial, industrial and technology stocks were among the leading stocks on Tuesday.
Regarding the election results, Cramer said if Trump won, we would continue to maintain the status quo, which is quite good for the stock market. However, if Biden wins, we’ll likely see more commercial and more immigrants, and that will lead to more economic activity. So whoever dominates, your portfolio can remain intact.
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Your money, your ballot
In a special segment of Your Money, Your Vote, Cramer took calls from viewers. The first caller has taken profits in his portfolio and is currently facing capital gains tax. Cramer says discipline always prevails and gaining benefits is always prudent, even if that means paying a little more for Uncle Sam.
Asked about Teladoc (TDOC) – Receive reports, Cramer said the merger with Livongo Health (LVGO) – Receive reports is a game changer and he still recommends it.
Off the Charts: Gold
In the segment “Off The Charts”, Cramer asked colleague Carolyn Boroden about the direction of gold in these uncertain times.
Boroden is optimistic about the gold outlook. She notes that the precious metal’s weekly chart has a bullish pattern with higher highs and lows until it recently weakened. She saw floor support between $ 1,827 and $ 1,853 and maintained a price target of $ 2,153 per ounce.
Moving on to the daily chart, Boroden correctly predicted the October low of gold with convergence of Fibonacci time periods. She has seen some support from $ 1,906 to $ 1,939, which signals her that gold has more room to run if it can sustain above these levels.
Cramer agrees with Boroden’s outlook, reiterating his recommendation on SPDR Gold Shares (GLD) – Receive reports and Barrick Gold (YELLOW) – Receive reports.
Executive decision: ThermoFisher Scientific
In his first “Executive Decision” segment, Cramer spoke with Marc Casper, president, president and chief executive officer of ThermoFisher Scientific. (TMO) – Receive reports, the life science company just announced earnings of $ 1.30, causing stocks to rise 2.2% at the end of the session.
Casper recorded 80,000 ThermoFisher employees for their strong performance this quarter. He said they were able to reuse the PCR test machine for COVID-19 in record time, increasing production of test kits from 0 to 20 million tests per week.
Casper said PCR testing is the gold standard of testing and ThermoFisher continues to make strides in areas such as pool testing to help deliver reliable results even faster with a process. extremely automatic.
When asked about his views on the election, Casper noted that ThermoFisher’s mission is to assist governments, hospitals, laboratories and doctors in any way they can, no matter who is in the White House. The company continues to support vaccine manufacturers and will play a key role with anyone’s vaccines proven to be successful.
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Discover 5 election myths
In his No Chat Violation segment, Cramer outlines the 5 biggest misconceptions when it comes to voting and your money.
The first misconception is that the Democrats will cut the defense budget. In fact, Cramer said Democrats love to spend on technology and that’s good news for L3Harris. (LHX) – Receive reports and Raytheon (RTX) – Receive reports.
Second misconception: The green wave will mean big changes to health care. Cramer says we’ve heard that before, but nothing happened. He said buy Centene (CNC) – Receive reports and Bristol Myers Squibb (BMY) – Receive reports.
Third, Biden is bad for the oil business. In fact, Biden is not good for drilling, but it’s great news for the rest of the oil industry, who will benefit from higher oil prices, Cramer said.
Next, it’s a misconception that banks will get worse with Biden. But banks were having trouble under Trump, which is why Cramer offered to buy Goldman Sachs. (GS) – Receive reports and Morgan Stanley (multiple sclerosis) – Receive reports.
Misconception in the end, Democrats will break up with big technology. Cramer said in some cases, like Alphabet (GOOGL) – Receive reportscompanies are more valuable as separate companies. But overall, he hopes exactly how big tech will exist no matter who wins.
Here’s what Jim Cramer said about some of the shares callers offered for sale during the Mad Money Lightning Spins on Tuesday night:
Fisker (FSR) – Receive reports: “I think that’s a pretty good guess, but it will take a few more years for them to have a product to sell.”
NovoCure (NVCR) – Receive reports: “I totally believe in technology. I think this is a decent amount to buy.”
Sunrun (RUN) – Receive reports: “I always default to First Solar (FSLR) – Receive reports. “
Big number (BIG) – Receive reports: “I’m not a huge fan but there is some momentum there.”
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At the time of publishing, Cramer’s Action Alerts PLUS had a position in BMY, GS, GOOGL.